National energy efficiency programme

Executing agency: UN/DESA Division for Sustainable Development

Senior advisor: Mr. Yehia Abu-Alam

Start date: 28 August 2002

Total budget: USD 909,092

The aim of this programme is to assist the energy sector in Saudi Arabia to meet the rapidly growing power and energy demand through efficient and rational consumption patterns, thereby protecting the local environment while at the same time providing a sustainable alternative to increased energy supply and generation capacity expansion.

Upon completion of the project, Saudi Arabia will have implemented a national programme to improve energy efficiency both in production and in end-use. Ever increasing demand resulting from rapid economic growth, accompanied by expanding industrialization and urbanization in all parts of the Kingdom, is creating considerable stress on existing energy systems. Higher levels of end-use efficiency offer a chance to defer a part of the massive investment needed to meet the growing energy demand. By the end of the project, Saudi Arabia will possess the improved institutional and human capacities to achieve this aim. Of greater long-term significance is that by the end of the project there will have been developed ongoing and self-sustained activities designed for achieving energy efficiency in the future. Expected outcomes of the project include:

- An enhanced institutional infrastructure for improving energy efficiency as an important strategic energy policy objective to affect a widespread uptake of more efficient techniques and technologies.
- Active and sustained processes and programs to enhance energy efficiency in industrial, Government, commercial, and residential sectors (the transport sector will be tackled in Phase II).
- An increased awareness at the national level and conviction of the tangible benefits of managing energy usage and maintaining a high level of efficiency.
- Involvement of the private sector (banks, consultants, equipment manufacturers, suppliers, importers, etc.) in stimulating the market for energy efficiency as regards specialist skills, access to finance and supply of technologies. Start up of energy service companies will be an indicator of private sector participation.
- Energy efficiency labels and standards for air conditioners, electric motors and lighting.
- Energy efficiency codes for new residential buildings.
- An "Energy Efficiency Information & Awareness Center" that promotes energy and load management to reduce per capita consumption of electricity and other energy sources and to reduce the peak power demand.
- Ongoing policy development, regulation and project implementation aimed at further improved energy efficiency consistent with national development objectives.
- A cadre of professionals both in Government and supporting institutions capable of mapping out further assessments, initiatives, policies, and action plans to foster energy efficiency.
- A set of linkages between Saudi and international institutions will be established through the assistance of UN/DESA and UNDP. These linkages will promote and perpetuate an energy efficiency policy dialogue and action after the project is completed.